Speaking at a panel at the Boao Forum, the Deputy Governor of the Chinese central bank People’s Bank of China (PBOC), Xuan Changneng, said the U.S. failed to regulate crypto.
The Chinese official pointed out that this failure caused the U.S. banking crisis to impact the global banking industry.
- Xuan Changneng associated the collapse of two U.S. banks with the risks in the crypto market.
- The PBOC official added that U.S. authorities should consider stronger regulations to prevent any further financial risk.
- He
also underlined that such an approach would help protect financial
stability while allowing the adoption of financial innovation at the
same time.
- The
U.S. banking crisis started with the consecutive collapses of
crypto-friendly Silvergate Bank, Silicon Valley Bank (SVB), and
Signature Bank within a week in March.
- The
consecutive collapses have also created a contagion effect for banks in
other countries, including Swiss banking giant Credit Suisse.
- China is famous for its strict approach toward the crypto market.
- The
country restricted crypto trading in 2017 before permanently banning
cryptocurrencies, crypto exchanges, and mining within its borders in
2021.
